QUESTION 1: My wife and I need to add to this IRA LLC account our 2020 IRA Contributions, I am working, and I am contributing to my 401K plan. So far I have contributed about $3,000 towards my 401k plan. My earned income will be about $90,000 this year. I can contribute to the maximum of 401K limit. I am over 50 years old.
ANSWER: Based on your figure of $90K and assuming it is self-employment earned income, you can contribute the full $19,500 salary deferral limit for 2020 plus an additional $6,500 if you are 50 or older in 2020. VISIT HERE for information on the annual solo 401k contribution limits.
QUESTION 2: How much I can contribute to Traditional IRA and 401K Separately and Combined for the year 2020?
ANSWER: Yes you can contribute to both (the 401k and the IRA). However, you may not be able to take a tax deduction on the entire IRA contribution because you are also contributing to a solo 401k.
QUESTION 3: And, how much my wife can contribute towards her Spousal IRA for
the year 2020? She is also over 50 years old.
ANSWER: Yes your spouse can contribute to her own IRA but the amount that may be deducted on the joint tax return will be affected once again by your active participation in your day-tome employer 401k plan. Please click here to find out how much both of you can contribute to your respective IRAs.
Thank you, Ben in New Jersey